News
Asia response to revised Basel Accord
Asian countries have responded well to proposals for a new regulatory framework strengthening the global banking system and allowing banks more independence in assessing capital risk, according to New York Federal Reserve President William McDonough. …
Jakarta sticks to controversial c.bank law changes
Indonesia said on Feb. 12, 2001 it would stick to proposed amendments to the central bank law that would effectively sack the existing board of governors, a move expected to add pressure to already strained relations with the IMF. The International…
BIS cbankers expect world economy to pick up
Central bankers meeting in Hong Kong on Feb 12, 2001 agreed that the global economy is now slowing but will return to growth in the second half of 2001, said an official who briefed reporters. Andrew Crockett, general manager of the Bank for…
Indonesia's IBRA chief optimistic on bank sales
The Indonesian Bank Restructuring Agency (IBRA) said on Feb 12, 2001 it was optimistic it would sell stakes in Bank Central Asia (BCA) and Bank Niaga as planned despite concerns some MPs might delay the process. "Yes, in principle I am optimistic," IBRA…
Ecuador cbank sells bankrupt banks property assets
The Ecuadorian Central Bank BCE (Banco Central del Ecuador) has put for sale the headquarters and branches of bankrupt banks, and will use he cash to settle loans made to the BCE to solve liquidity problems. Initially it is offering the assets to…
Kazakh currency expected to devalue 5% in 2001
Kazakhstan's currency, the tenge, will not devalue by more than 5-6% this year, National Bank head Grigory Marchenko told Interfax news agency. He said that Inflation is targeted to drop to 6-8% this year from 9.8% in 2000. The central bank will be able…
Zimbabwe says to lift forex directive on Feb 15
The Reserve Bank of Zimbabwe said on Feb 12, 2001 a directive to commercial banks to sell all foreign currency from clients' export earnings to the central bank or the state oil company would be lifted on Feb 15. "This directive has been issued as a…
Bank of Israel may seek data on high-tech credit
The Bank of Israel's Supervisor of Banks is considering asking commercial banks to report specifically on the extent of their loans to the high-tech sector, a spokesman said on Feb 12, 2001. Loans to the technology sector are currently included within…
CNB not to undershoot target again- Frait
The Czech National Bank (CNB) should not undershoot its inflation target in 2001 again and must react in time, said Jan Frait, a member of the CNB Bank board. "There is probably no danger that we undershoot the target once again, otherwise it could be a…
Argentina seeks probe into money-laundering
The Argentine government, embroiled in a money-laundering scandal threatening the job of the Central Bank chief, requested on Feb 12, 2001 an investigation involving local and foreign banks and a Mexican drug cartel. Federal Judge Adolfo Bagnasco has…
Pakistan says Islamic banking won't hit accords
Military ruler General Pervez Musharraf said on Feb. 12, 2001 that Pakistan's plans to introduce interest-free Islamic banking would not affect the country's international financial dealings and accords.A government statement quoted him as giving the…
West African Monetary Institute gets officers
The Committee of Governors of the West African Monetary Institute (WAMI) has appointed four of the five senior officers to work with the Institute's Director-General, M.O. Ojo, a statement from the ECOWAS Secretariat said in Abuja on Feb 12. According to…
Oman allows banks to sell insurance policies
The Central Bank of Oman (CBO) has allowed commercial banks operating in Oman to sell insurance policies in partnership with any insurance companies in the Sultanate. However, the Central Bank has stipulated that the policies must be sold by the…
UAE studies licensing new foreign banks-cen bank
The United Arab Emirates is considering allowing more foreign banks to operate in the country after a virtual freeze on new licences, the central bank governor said in remarks published on Feb 11, 2001. "The internal banking structure is strong and able…
UAE to assess money laundering
According to Al-Hayat newspaper [Feb. 11, 2001], the Governor of the Emirates Central Bank, Mr. Sultan Bin Nasser Al-Suweidy, said that an international monetary committee will visit the UAE during the period of February 19-21. This committee will assess…
Zimbabwe orders banks to remit forex to cenbank
The government of Zimbabwe has directed commercial banks to remit 75 percent of their foreign currency to the Reserve Bank of Zimbabwe until further notice, bank officials said on Feb 10."There was a directive yesterday to the effect that banks should…
Nigeria CBN prepares banks for universal banking
The Central Bank of Nigeria (CBN) has started processing the banking licences of banks with a view to granting them a general licence for universal banking. This was revealed to finance journalists in Lagos over the weekend [Feb. 10-11, 2001] by the…
Japan cuts interest rates
The Bank of Japan has decided to cut its largely symbolic discount interest rate to 0.35% from 0.5%. However, Japan's key interest rate, called the overnight call rate, has been kept at 0.25%. The Bank of Japan (BoJ), led by governor Masaru Hayami, has…
Bank Indonesia officials to be suspects over loans
Senior Indonesian central bank officials will soon be named suspects over the handing out of huge loans to struggling banks in the late 1990s, Attorney General Marzuki Darusman said on Feb 9, 2001."In the next one or two weeks, there will be senior…
BIS to host 17 cbank officials in HK Feb 12
The Bank for International Settlements plans to host officials of 17 central banks in Hong Kong on Feb 12, 2001. An official of the Basel-based institution said the central bankers will discuss both the global economy and the strengthening of financial…
Buba Stark-EU fin min council should censure Irish
Ireland should be censured by the full council of European Union finance ministers, for not adhering to its commitment to tighter fiscal policy, Deutsche Bundesbank Vice President Juergen Stark said on Feb. 9, according to German newspaper Boersen…
Greek cbank says no sales of euros to restructure
Greece's central bank said on Feb. 9, 2001 that it had not been selling euros as part of a restructuring of its foreign reserves but that some payment in foreign exchange had been made on behalf of the Greek government. "All these rumours that the Bank…
No need to reform BoF advisory mon policy council
There is no need to reform the Monetary Policy Council (MPC) of the Bank of France, which advises Governor Jean-Claude Trichet, according to Raymond Douyere, a former Socialist Party parliamentarian appointed to the nine-member MPC in 2000. "Abolishing…
US plan to widen euro debt holding is logical-ECB
The European Central Bank said on Feb 9, 2001 plans by the U.S. monetary authorities to widen their holdings of government securities in the euro zone to include countries other than Germany were a logical step following the arrival of the euro. "This is…